Granite Construction Incorporated (GVA)
Debt-to-assets ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 614,781 | 403,785 | 458,692 | 287,000 | 286,934 | 286,872 | 286,801 | 290,549 | 331,191 | 331,192 | 331,222 | 331,647 | 330,522 | 405,644 | 405,770 | 355,911 | 356,108 | 394,841 | 366,896 | 333,290 |
| Total assets | US$ in thousands | 2,813,540 | 2,580,320 | 2,376,580 | 2,077,390 | 2,167,930 | 2,402,650 | 2,284,910 | 2,263,280 | 2,494,930 | 2,561,760 | 2,478,900 | 2,373,680 | 2,380,000 | 2,488,270 | 2,508,650 | 2,384,380 | 2,502,090 | 2,612,660 | 2,524,620 | 2,358,600 |
| Debt-to-assets ratio | 0.22 | 0.16 | 0.19 | 0.14 | 0.13 | 0.12 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.16 | 0.16 | 0.15 | 0.14 | 0.15 | 0.15 | 0.14 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $614,781K ÷ $2,813,540K
= 0.22
Granite Construction Inc.'s debt-to-assets ratio has shown some fluctuation in recent quarters. The trend indicates a gradual increase in the debt-to-assets ratio over the past two years, with the ratio moving from 0.13 in Q4 2022 to 0.23 in Q4 2023. This increase suggests that the company has taken on more debt relative to its total assets.
It is important to note that a higher debt-to-assets ratio can indicate increased financial risk, as the company is relying more on debt financing to support its operations and growth. However, a debt-to-assets ratio of 0.23 in Q4 2023 suggests that the company still has a significant portion of its assets financed by equity.
Further analysis and comparison with industry benchmarks or the company's historical performance would provide more insight into the implications of this trend on Granite Construction Inc.'s financial health and risk profile.
Peer comparison
Dec 31, 2023